A weak yen is hurting Japanese household sentiment and could erode their purchasing power, the government said in a report on Friday, stressing concerns about the negative economic impact of the currency’s fall.
When former Prime Minister Shinzo Abe’s government implemented Abenomics stimulus in 2013, rising inflation expectations helped boost consumer confidence, the government said in an annual white paper analyzing the economy.
But a renewed rise in inflation expectations since mid-2023 has dented household sentiment, partly as the public reacted to media reports of rising food prices and rising import costs due to the weak yen, the report said.
